ConocoPhillips delivered first oil at its Surmont 2 in-situ oil sands facility in Canada, marking a significant milestone for the megaproject.
“The oil sands are an important part of our portfolio,” said Ryan Lance, chairman and chief executive officer. “We’re pleased to see a project of this magnitude move from the capital phase to the production phase, knowing that it will produce for decades to come. Achieving this milestone on schedule demonstrates our continued commitment to meet our operational targets.”
Construction of the Surmont 2 facility, the largest single-phase steam-assisted gravity drainage (SAGD) project ever undertaken, began in 2010. Earlier this year, ConocoPhillips announced first steam, the initial step towards production. Since that milestone, steam has successfully heated the reservoir to a point where the well pairs can be converted to a SAGD configuration and allows the oil to flow. Production was declared once the inspected product was successfully routed to sales tanks.
Production will ramp-up through 2017, adding approximately 118,000 b/d gross capacity. Total gross capacity for Surmont 1 and 2 is expected to reach 150,000 b/d.
ConocoPhillips Canada President Ken Lueers attributes the project’s accomplishment to the hard work of the men and women who built the megaproject.
“To achieve this milestone on schedule is a testament to the tremendous dedication, continuous hard work and relentless focus on safety and execution,” said Lueers. “I am incredibly proud of the teams who have contributed to this success.”
The Surmont project is located in the Athabasca Region of northeastern Alberta, Canada, approximately 35mi (63km) southeast of Fort McMurray. Surmont is operated by ConocoPhillips under a 50/50 joint venture agreement with Total E&P Canada.
Image from ConocoPhillips.